Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

India

India

Suzlon looks for $500 million bond deal

INDIA: Suzlon is examining the possibility of raising $300-$500 million in overseas bonds to help repay its debts.

The company is due to pay €225.6 million of a foreign currency convertible bond (FCCB) in June. Recent speculation has suggested Suzlon may try to do this through the sale of subsidiary Repower.

The raising of bonds is one of a two other strategies Suzlon has for repaying the loan. One is through the sale of non-critical assets such as wind farms. The other is through generating cash through the company performance, including from subsidiary Repower.

Speaking about the move, Kirti Vagadia CFO said: "We are working aggressively on our plans to manage our near-term repayment obligations and remain very confident of meeting them.

"We have excellent business visibility, backed by a record order book, secure long-term OMS revenues, and almost no leverage on our international assets. Our lenders are fully supportive and we are also working with large international banks on meaningful debt raising options, including high-yield bonds in the US$300 million to US$500 million range."

Last month, there were reports Alstom was looking at acquiring Repower for €1.5 billion. Financial Times Deutschland said Suzlon was considering selling the subsidiary to the balance the books.

Neither company would respond to the reports other than the say it was speculation.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Windpower Monthly Events

Search more than 4,500 companies in the Windpower Directory

Latest Jobs